Segmentation provides great perspective into the diverse clusters of consumers in a target market. Once segments are defined, however, it is important to identify which provide value and promise for the brand.
This determination often focuses on a) segment size; b) the percentage of the segment engaged or open to engaging with the brand; and c) their spending potential in the category. Understanding who the segments are, but also their current and potential relationship to the brand, makes a segmentation more strategically actionable.
For more on W5’s philosophy and approach to segmentation, please refer to our newly-updated white paper, “W5 on Segmentation.”